The Reserve Bank of India (RBI) relaxed on Thursday some of the investment rules for foreign institutional investors (FIIs) buying into the country's debt as part of a long-expected $10 billion (Rs 53,728.70 crore) increase in corporate and government debt limits.

The RBI notified the limits on government bond investments would be raised by $5 billion to $25 billion for FIIs, and by $5 billion to $50 billion across corporate bonds. The measures had been previously announced by the government.

As part of the increase in government debt limits, the RBI announced the removal of the clause that had mandated first time FII purchasers of dated government bonds must buy securities with at least three-year residual maturity. As a result, these buyers will no longer face any maturity restrictions on dated government securities.

Regarding corporate bonds, the RBI added FIIs would not able to buy certificates of deposits or commercial paper as part of the enhanced $5 billion limit. The RBI also removed the one-year lock-in period for $22 billion investments in infrastructure bonds.